The weak state of the French economy and uncertain outlook for budget targets was in focus on Wednesday after official data confirmed that the country is in recession. Weak growth and public finances in France are of acute concern to the European Commission and to Germany which is the main powerhouse in the Euro zone.
The figures are also watched closely on nervous financial markets.
Britain, France and Germany called for stricter rules to stop companies such as Google, Apple and Amazon aggressively avoiding taxes in austerity bitten Europe, while acknowledging they had done nothing unlawful.
Wednesday’s economic growth numbers make it official: the Euro zone is in its longest recession since records began in 1995. The 17-nation economy shrank by 0.2% between January and March, compared with last quarter's decline of 0.6%, deepening the bloc's recession as economic output fell for the sixth consecutive quarter.
French President Francois Hollande has called for eradication of the world's tax havens and told French banks they must declare all of their subsidiaries. He was speaking after presenting a draft law aimed at moralising French public life - a response to the tax scandal that has shaken his presidency.
French President Francois Hollande has promised sweeping new anti-corruption measures, a day after his former budget minister admitted having had a secret foreign bank account containing hundreds of thousands of Euros.
French President Francois Hollande's popularity rating has fallen to its lowest level since he came to power, according to a poll released a day before he is due to address the nation to ask for patience as he attempts to revive the economy.
Dubbed the “entente frugale” and criticised by some as a dangerous dilution of military sovereignty, Franco-British defence cooperation is nonetheless growing stronger. Shrinking budgets, a less indulgent United States and Europe’s diminishing military clout in the world have bolstered the two countries’ determination to work together.
After lengthy talks in Brussels European leaders have reached an agreement on the budget for 2014-20 with a ceiling of 960 billion Euros, the first time the EU multi-annual budget has been reduced.
French President François Hollande called on the Euro zone on Tuesday to develop an exchange rate policy to help protect the common currency from “irrational movements”. His comments came amid growing concern that the Euro, now trading around 1.35 to the US dollar, is too strong and could undermine the country’s exporters and hence wider economic growth.
Germany and France have warned UK Prime Minister David Cameron that Britain cannot pick and choose EU membership terms after he pledged a referendum. PM Cameron said a poll would be held if the Conservatives were returned to power at the next general election, which is expected in 2015.